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When completed, the transaction will support the optimisation of Aramco’s assets. (image source: Adobe Stock)

Aramco has signed a US$11bn lease and leaseback deal involving its Jafurah gas processing facilities with a consortium of international investors, led by funds managed by Global Infrastructure Partners (GIP), part of BlackRock

The Jafurah unconventional gas development is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion Stock Tank Barrels of condensate, with production set to commence this year. It is set to play a key role in Aramco’s plans to increase gas production capacity by 60% between 2021 and 2030, to meet rising demand.

As part of the transaction a newly-formed subsidiary, Jafurah Midstream Gas Company (JMGC), will lease development and usage rights for the Jafurah Field Gas Plant and the Riyas NGL Fractionation Facility, and lease them back to Aramco for a period of 20 years. JMGC will receive a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process and treat raw gas from Jafurah. When completed, the transaction will support the optimisation of Aramco’s assets and capture additional value from the development of the Jafurah gas field.

Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by investors led by GIP. Co-investors in the transaction include leading institutional investors from Asia and the Middle East.

Amin H. Nasser, Aramco president & CEO, said: “Jafurah is a cornerstone of our ambitious gas expansion programme, and the GIP-led consortium’s participation as investors in a key component of our unconventional gas operations demonstrates the attractive value proposition of the project. This foreign direct investment into the Kingdom also highlights the appeal of Aramco’s long-term strategy to the international investment community. We look forward to Jafurah playing a major role as a feedstock provider to the petrochemicals sector, and supplying energy required to power new growth sectors, such as AI data centres, in the Kingdom.”

Bayo Ogunlesi, chairman and CEO of GIP, said: “We are pleased to deepen our partnership with Aramco with our investment in Saudi Arabia’s natural gas infrastructure, a key pillar of global natural gas markets.”

This investment builds upon the strong existing relationship between Aramco and BlackRock. In 2022, BlackRock co-led a consortium of investors in a separate minority investment in Aramco Gas Pipelines Company.

The contract signing. (Image source: Hill International)

Mellitah Oil & Gas, a joint venture between Libya’s National Oil Corporation and Italian energy firm Eni, has awarded Hill International an US$8bn project management contract for the Structures A & E project, a major offshore project with planned production of 750mn cubic feet per day

This project comprises the development of two gas fields off the coast of Libya. The scope includes the delivery of two offshore drilling platforms and infrastructure to transmit natural gas to the existing Mellitah Complex, located around 100 km west of Tripoli, for treatment and distribution. The project will also deliver a new carbon capture and storage facility at the Mellitah Complex.

Project management services to be provided by Hill include project planning, design coordination and reviews, procurement support, estimating and cost management, schedule management, quality assurance/quality control, risk mitigation, change management and claims prevention, closeout support, and more.

The Structures A & E project aims to support domestic energy needs and increase Libya’s gas exports to Europe, reinforcing the country’s role in regional energy security, increasing competition and supply reliability, and reducing prices for customers. Production is expected to commence in 2026.

“The Structures A & E project is of great national and international importance,” said Hill president, Middle East and North Africa Waleed Abdel-Fattah. “Especially because of our long history in Libya, we are honoured to take part in an initiative that will help shape the country’s future.”

“Our local team looks forward to collaborating with Mellitah and Hill’s global network of energy experts to deliver the megaproject as envisioned, helping ensure energy security for Libyans and customers throughout the region,” added Hill chief executive Officer Raouf Ghali. “This new assignment is a testament to our company’s long-term commitment to delivering the infrastructure of change in the country.”

The award comes as Libya is seeking to increase its oil and gas production with the help of international oil companies, which are starting to return to Libya after a hiatus of several years. Exxon Mobil, bp and Shell have recently signed agreements with Libya’s National Oil Company (NOC) to evaluate hydrocarbon prospects and conduct technical studies relating to key Libya fields. There is significant international interest in Libya’s largely untapped hydrocarbon potential, as demonstrated by the number of bids submitted following the launch of its international bid round earlier this year, results of which are expected in around November. This offers 22 blocks for exploration and development (11 offshore and 11 onshore) including areas with undeveloped discoveries estimated to contain a minimum of 2.0 Bboe in hydrocarbon resources.

Amin H. Nasser, CEO Aramco. (Image source: Aramco)

Aramco reported healthy profits of US$22.7bn in Q2 2025 in its latest financial results, albeit down from the US$26bn recorded in Q1, and maintained high levels of capex to pursue its strategic objectives 

Half-year profits stood at US$48.7bn compared with US$56.3bn in the first half of 2024. The decrease was mainly due to the impact of lower revenues (due to lower crude oil prices and lower refined and chemical products prices) as well as higher operating costs, according to the company.

Aramco declared a Q2 2025 base dividend of US$21.1bn and a performance-linked dividend of US$0.2bn to be paid in the third quarter.

“Aramco’s resilience was proven once again in the first half of 2025 with robust profitability, consistent shareholder distributions and disciplined capital allocation,” said Amin H. Nasser, Aramco CEO.

“Market fundamentals remain strong, and we anticipate oil demand in the second half of 2025 to be more than two million barrels per day higher than the first half. Our long-term strategy is consistent with our belief that hydrocarbons will continue to play a vital role in global energy and chemicals markets, and we are ready to play our part in meeting customer demand over the short and the long term.”

Upstream capital expenditure stood at US$19.2bn for the first half of 2025, relatively consistent with the first half of 2024 due to continuing development activity on multiple strategic gas projects to expand its gas business and advancement of crude oil increments designed to maintain crude oil MSC at 12.0mn bpd.

Aramco reported progress in its Berri, Marjan and Zuluf crude oil increments and brought Phase One of the Dammam development project onstream.

Aramco’s strategy to increase sales gas production capacity by more than 60% was advanced with multiple gas projects, including the Tanajib Gas Plant, Fadhili gas plant expansion and Jafurah Gas Plant, part of the Jafurah unconventional gas field development, with phase one on track for completion in 2025.

Downstream, capital expenditures for the first half of 2025 were US$5.1bn, an increase of 33.1% compared to the same period in 2024, predominantly due to the steady progress of capital projects such as the construction of the refinery-integrated petrochemical steam cracker being developed by S-OIL, the Amiral expansion at the SATORP refinery, and other projects. Global retail momentum continued with the introduction of premium fuel lines in Chile and Pakistan.

“We continue to invest in various initiatives, such as new energies and digital innovation with a focus on AI – aiming to leverage our scale, low cost, and technological advancements for long-term success,” added Nasser. The company significantly boosted its AI computing capacity to reach over 500 PetaFLOPS, a 20-fold increase from the previous year, while power purchase agreements were signed to develop new renewables projects, capitalising on the Kingdom’s advantaged solar and wind resources.

The current completion rate of the project has reached 46%. (Image source: WAM)

As part of ongoing efforts to enhance infrastructure in the Emirate of Sharjah, the Sharjah Electricity, Water and Gas Authority (SEWA) has launched the first phase of the natural gas network connection project in Al Dhaid City.

According to SEWA, the current completion rate of the project has reached 46%, with phase one scheduled for completion in the first quarter of 2026.

The work is progressing according to the approved timeline, demonstrating SEWA’s commitment to delivering critical infrastructure efficiently and on schedule.

Engineer Ibrahim Al Balgouni, director of the Natural Gas Department at SEWA, confirmed that this phase involves the extension of a natural gas pipeline to the Jabal Omar and Tal Al Zafran neighbourhoods.

The total length of the network being laid is 83 km, with an overall investment of approximately US$3.81mn (AED14mn).

Once complete, the project will provide gas services to nearly 989 residents in the area.

Al Balgouni noted that this development marks a significant step towards building a modern and sustainable energy network throughout Sharjah.

The project is part of a broader strategy to reduce reliance on traditional gas cylinders by offering a safer, more economical, and environmentally friendly alternative.

By expanding the natural gas network, SEWA is helping to boost living standards while supporting residential, commercial and industrial growth in Al Dhaid.

The initiative is also in line with Sharjah’s broader goals of achieving comprehensive urban development and enhancing community wellbeing.

The organisation added that its focus on high safety standards and advanced infrastructure ensures that the gas networks not only meet current needs but are future-ready.

Connecting Al Dhaid to the natural gas grid is expected to drive economic activity, reduce household energy costs, and contribute to the city's transformation into a more efficient and sustainable urban environment.

SEWA continues to play a vital role in supporting the emirate’s long-term development plans through strategic investments in essential utility services, the organisation said in a press statement.

It added that this initiative follows the directives of His Highness Sheikh Dr. Sultan bin Mohamed Al Qasimi, Supreme Council Member and Ruler of Sharjah, and aligns with the emirate’s vision for sustainable development and improved quality of life.

The collaboration AD Ports Group’s commitment to expanding its integrated ports, maritime, logistics, and industrial footprint in Egypt. (Image source: AD Ports)

AD Ports Group, Egypt's Ministry of Petroleum & Mineral Resources and Dubai-based TCM Project management, have signed an agreement to explore joint operation and development of Egypt’s strategic crude oil storage network, in a move set to strengthen UAE/Egypt ties and boost Egypt's energy infrastructure

The planned collaboration aligns with AD Ports Group’s commitment to international expansion and diversification, and developing its integrated ports, maritime, logistics, and industrial footprint in Egypt, one of its largest overseas markets, where it has announced approximately US$469mn in investment commitments since 2022.

The potential partnership aims to unlock new efficiencies and value creation opportunities by integrating AD Ports Group’s world-class operational expertise and digital capabilities with Egypt’s established energy infrastructure. Egypt’s crude oil storage facilities are strategically positioned to serve domestic and international markets, and to play a pivotal role in regional energy security, supply chain resilience, and the facilitation of international crude oil trade flows.

H.E. Eng. Karim Badawi, the Minister of Petroleum & Mineral Resources for the Arab Republic of Egypt said, “We are pleased to sign a Memorandum of Understanding with both AD Ports Group, one of our most important partners in trade and infrastructure, and TCM, to explore opportunities to maximise the value of Egypt’s advanced petroleum sector assets, particularly the strategic crude oil storage facilities, as well as to identify other areas of mutual interest.” He added that the partnership would maximise the added value of Egypt’s petroleum sector assets and enhance regional cooperation with the UAE, with which Egypt enjoys strong ties throughout the energy value chain.

Captain Mohamed Juma Al Shamisi, managing director and group CEO, AD Ports Group, said: “This Memorandum of Understanding highlight our Group’s strategic interest in Egypt, a nation with which the United Arab Emirates enjoys deep and enduring ties. The potential joint operation and development of Egypt’s extensive crude oil storage network reflects our commitment to bringing the full strength of AD Ports Group’s integrated business model—spanning ports, maritime, logistics, economic zones, and digital solutions—through forging long-term strategic partnerships, supporting the economic and industrial objectives of the Egyptian government.”

In another significant move in its global expansion strategy, AD Ports has inaugurated its first international office in China, which will lead and coordinate the Group’s commercial and investment activities across the country and the broader Asia region.

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